An early push towards a new all-time high on the Nasdaq 100 has faltered quickly, sending the Nasdaq 100 index lower by 0.74% as of the time of writing.
The Nasdaq 100 index is being pressured by the rise of bond yields to their highest levels in nearly 12 months. This has made the bond markets attractive for investment once more, at the expense of stocks. Also, there may be a feeling that stocks are now in the overextended territory and the time for some profit-taking may be now.
The Nasdaq 100 index has peaked at 13908.3, making this level the new all-time high on the index.
Technical Outlook for Nasdaq 100
Today’s decline follows price topping out close to the channel’s upper border, and just short of the projected resistance at the 12957.9 price level (100% Fibonacci extension from the swing low of 23 March to the swing high of 23 June 2020). If the decline is aimed at the lower border of the channel, then the next target could fall at the 13344.2 support line. A breakdown of this border brings in 13135.5 and 12973.9 into the picture as possible downside targets.
On the other hand, if the bulls can recapture the initiative, the Nasdaq 100 index could challenge the resistance at 13928.7 (127.2% Fibonacci extension level), with the possibility of a push towards 14435.6 (141.4% Fibonacci extension) if the break of 13928.7 is achieved.
Nasdaq 100 Daily Chart